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Cash-on-Cash Return Calculator

See what the cash you actually put into a rental deal is earning. Combine purchase price, down payment, closing costs, rehab, expenses, and the loan into one cash-on-cash return number.

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Cash-on-cash return

1.60%

Annual cash flow

$1,496

Monthly cash flow

$125

Cash invested

$93,750

Deal at a glance

Cash-on-cash return is modest — common in higher-priced markets where appreciation does more of the work.

Down payment

$81,250

Loan amount

$243,750

Monthly debt service

$1,663

Annual NOI

$21,450

Cash-on-cash return divides the first-year pre-tax cash flow after debt service by the actual cash invested. Cash invested in this estimate equals down payment plus closing costs plus upfront rehab or reserves.

How to Use

  1. Enter the purchase price along with the down payment percentage you plan to put down.
  2. Add closing costs and any upfront rehab or reserves so total cash invested is accurate.
  3. Enter monthly rent, vacancy assumption, and recurring monthly operating expenses.
  4. Set the interest rate and loan term to estimate the monthly debt service.
  5. Review cash-on-cash return alongside annual cash flow and monthly cash flow before comparing the deal with other investments.

Frequently Asked Questions

What is cash-on-cash return?

Cash-on-cash return is annual pre-tax cash flow divided by total cash invested. It tells you how the cash you actually put into the deal is performing in year one, including the effect of financing.

What is included in cash invested?

This calculator counts the down payment, closing costs, and any upfront rehab or reserves. Some investors also add holding costs incurred before the property is rent-ready.

How is this different from cap rate?

Cap rate ignores financing and measures property income performance. Cash-on-cash return measures the leveraged return on the actual cash you put in. The same property can show very different cash-on-cash returns at different down payment levels.

Does cash-on-cash include appreciation or principal paydown?

No. Cash-on-cash return tracks actual cash that hits your bank account after debt service. Appreciation, principal paydown, and tax benefits are real, but they show up in total return, not in cash-on-cash.

Why was my cash-on-cash return negative?

Negative cash-on-cash means operating expenses plus debt service exceed the income the property generates. Common causes are over-leveraged purchase, undersized rent assumption, or under-budgeted operating expenses.

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